UPDATE 1-Pan American profit falls on takeover charge

May 16 (Reuters) - Pan American Silver Corp reported a 46 percent drop in quarterly profit as the charges related to its takeover of Minefinders Corporation Ltd outweighed higher realized silver prices and sales volumes.

The silver producer, which reported results late on Tuesday, said profit fell to $50.2 million, or 47 cents a share, in the quarter ended March 31, 2012. That compared with $92.7 million, or 86 cents a share, in the year-earlier period, when the company had a non-cash gain on outstanding warrants.

Adjusted to remove one time items, Pan American earned $61.4 million, or 58 cents a share, compared with $65.2 million, or 61 cents a share.

Analysts, on average, expected earnings of 46 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 20 percent to $228.8 million on higher realized metal prices and sales volumes.

Pan American produced 5.5 million ounces of silver in the period, up from 5.3 million ounces in the first quarter of 2011. Cash costs per ounce rose to 32 percent $10.49, while the average realized silver price rose 6 percent to $33.00.